Business Association Gauge Shows Slip in Sentiment

Businesses are taking a wait-and-see approach because they want a clear picture of the new economic policy direction and the expected changes to the subsidy system, Ákos Kozák, co-chair of the National Association of Entrepreneurs and Employers (VOSZ) and co-founder and director of Balance Economic Research and Consulting, which helps prepare the index, said at a press conference in Budapest presenting the third-quarter VOSZ Barometer report.

He added that, based on the responses, the most frequently cited obstacles to day-to-day business operations continue to be labor shortages and low domestic demand.

The co-chair of VOSZ pointed out that businesses continue to view operating at a loss as a significant business risk, and an increasing proportion of them are citing factors related to weather and climate change.

VOSZ's measure of business confidence fell 2 percentage points to 50% in the third quarter, he stated.

Among the sub-indices of the VOSZ Barometer, the measure of business sentiment fell 5 percentage points from the previous quarter to 58%.

Just 22% of VOSZ members expect to make new hires and 26% plan investments. Around 61% adjusted prices to meet inflation during the quarter.

The survey was conducted among some 600 SMES, including 400 VOSZ members.